April 2012 Archive for Midday Futures

Grain futures are continuing their wild ride in today's session.  Corn is down 5-9c, soybeans up 1-11c, wheat down 5-8c. 

Corn futures are under pressure due to fast planting progress and excellent weather.  New and Old crop spreads are continuing their down move with the July/Dec corn spread down 3c at -67.4.  It will be important to see if July corn holds the $6.00 support level. 

Wheat futures are also down today due to large harvest ahead.  It's really easy to make a bearish case, just look at a wheat field.  There are scattered reports of disease and other problems, but they are few and far between at this point.  The biggest bull factor would be wheat's feed value verses the price of corn.

Soybeans are near their highs of the day.  Soybeans still need additional acres and at least trend line yields to meet demand.  New crop beans are up 1.5c despite new corn being down 7c. 

Outside market forces are most positive, and option expiration today could make the rest of the day very volatile.

Good Luck & Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Twitter:  @jlewis58

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Corn & Soybean futures are higher this morning, with the old crop corn leading the way.  The price action this morning is still a "hangover" from Friday's USDA stocks report. 

May Corn futures are up 9c at $6.64 per bushel, while new crop Dec. corn is only up 2.5c at $5.474.  Th July/Dec corn spread is now trading $1.10, up 30c from last week.  Dec. Corn is still below the 50 day Moving average, keeping the trend negative.  Fall and Spring weather has allowed for excellent field preparation up to this point.  Yesterday's crop progress report showed corn to be 3% planted, less than anticipated but 1% above the 5 year average.

New crop soybeans failed to reach $14.00 this morning but did reach $13.97.  Most analyst believe that $14.00 is major resistance for November soybeans.  Soybeans are still in a positive trend but are in "overbought" territory.  The market is still trying to buy acres from other crops in order to meet world demand.  There is some talk of an early wheat harvest leading to a few double crop bean acres. 

Wheat Futures are slightly under pressure due to rainfall throughout the southern plains in the past 24 hrs.  There have been reports of 1 to 3 inches of rain across much of north Texas, Western Oklahoma and Kansas.  This will only add to the negative tone for wheat futures as the crop looks great at this point.  Resistance for July Chicago wheat is $6.70 and support is near $6.50. 

Happy Trading,

Justin R. Lewis, M.B.A.

V.P. - KIS Futures, Inc

Direct: (877) 431-9805

Cell: (580) 335-1602

Twitter:  @jlewis58

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.